bitcoin halving“The theory is that there will be less bitcoin available to buy if miners have less to sell,” said Michael Dubrovsky, co-founder of mining R&D nonprofit PoWx.
But the periodic decline in Bitcoin’s minting rate could have a deeper significance than any near-term price movements for the functioning of the currency. The block reward is an important component of Bitcoin, one that ensures the security of this leaderless system. As the rewards dwindle to zero in the decades ahead, it could potentially destabilize the economic incentives underlying bitcoin’s security.
For those trying to make sense of this complex topic, CoinDesk offers the following explainer of Bitcoin’s third halving.
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